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Definition of 'Turnaround'

A turnaround is a process by which a company that is struggling financially can return to profitability. This can be done through a variety of methods, such as cutting costs, increasing revenue, or changing the company's strategy.

Turnarounds are often difficult and time-consuming, but they can be very successful if they are executed properly. In some cases, a turnaround can even lead to a company becoming more successful than it was before it started struggling.

There are a number of factors that can contribute to a company's need for a turnaround. These can include:

* A decline in sales
* Increased competition
* Rising costs
* Poor management
* Changing market conditions

When a company is struggling, it is important to take action quickly to prevent the situation from getting worse. A turnaround plan should be developed that identifies the problems that the company is facing and outlines the steps that will be taken to address them.

The turnaround plan should be specific, measurable, achievable, relevant, and time-bound. It should also be supported by the company's management and employees.

Turnarounds can be successful if they are executed properly. However, it is important to remember that there is no guarantee of success. Even if a turnaround plan is implemented correctly, there is still a chance that the company may not be able to return to profitability.

If a turnaround is successful, the company will be able to return to profitability and avoid bankruptcy. This can lead to a number of benefits, such as increased shareholder value, job creation, and economic growth.

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